400 Billion SHIB Dumped...Shiba Inu Gripped by Selling Fear

▲ Shiba Inu (SHIB)/AI generated image

More than 400 billion Shiba Inu (SHIB) coins have flowed into exchanges, dampening the sentiment of investors who were anticipating a price increase. Conversely, selling pressure is growing.

U.Today, a specialized virtual asset media outlet, reported on April 18 (local time), citing recent on-chain data, that Shiba Inu's inflow to exchanges has surged. The movement of virtual assets to exchanges is interpreted as investors' intention to sell rather than hold their assets. U.Today analyzed that this movement is consistent with the downward trend that has formed over the past few weeks. The focus is on liquidating holdings rather than a breakout.

Exchange inflow, an on-chain indicator, shows the most noticeable change in the Shiba Inu ecosystem. The balance of Shiba Inu held by exchanges has currently increased to approximately 81.5 trillion SHIB. Approximately 400 billion SHIB entered exchanges in a short period. The net inflow to exchanges increased by nearly 6%. An increase in supply within exchanges is highly likely to act as selling pressure that overwhelms market buying power.

On the price chart, Shiba Inu continues to show an unstable trend. Shiba Inu is currently consolidating in a narrow range below the 50-day moving average. No attempts to break through strong resistance have even been detected. Trading volume is also significantly lower compared to the previous explosive upward momentum. Concerns are rising that if the support level breaks down in a state of extremely reduced volatility, further declines could accelerate.

The decreased market interest in memecoins in general is also considered a negative factor. There is a lack of liquidity in the overall virtual asset market. Assets like Shiba Inu are failing to find new momentum that could stimulate investor sentiment. Large transactions by whale investors have been concentrated on exchange inflows. Among individual investors, a wait-and-see attitude is also deepening. The market expects Shiba Inu's price stagnation to continue for the time being.

As a large volume of assets is waiting on exchanges, a much stronger buying force than before is needed to support a price rebound. Currently, belief in an uptrend has faded. Shiba Inu's future trajectory is expected to be determined by the movements of selling forces. Investors should carefully monitor changes in exchange inflows and respond cautiously.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*